The U.S. Dollar continued to gain positive momentum in the wake of the Federal Reserve’s latest policy decision. With expectations higher than ever that a rate increase in the imminent future is nearly a done deal, all that is needed is for today’s release of 2nd quarter growth figures and personal consumption expenditures to solidify those expectations. Most experts are counting on September as the month when the Fed will raise rates, but upbeat news on today’s data releases could suggest that a second rate hike might be forthcoming later this year.
AS reported at 11:18 am (BDT) in London, the EUR/USD was trading at $1.0972, a loss of 0.06% for the Euro; the pair’s daily range was $1.0942 and $1.0993. The USD/JPY was higher by 124.3230 Yen, a gain of 0.26%. The U.S. Dollar Index had gained 0.4% to trade at 97.377 .DXY.
Commodity Currencies Still Pressured
Meanwhile the AUD/USD was down 0.05% to trade at $0.7288 while the NZD/USD was trading lower at $0.6614, a loss of 0.60%. In general, commodity-linked currencies remained under pressure following further declines in commodity prices. Oil prices, especially, have been tumbling on the world’s markets, with over supply as the likely culprit. Analysts are predicting that commodity currencies could have a thin month ahead.